Klarna is taking its boldest step yet into digital finance with plans to launch KlarnaUSD, a U.S. dollar-backed stablecoin built in partnership with Stripe. Announced today, the move positions the Swedish fintech giant alongside a growing list of major payment companies shifting toward blockchain-based settlement as cross-border payment costs continue to rise. The project is under active testing and is slated for a 2026 mainnet debut.
Aiming to Cut the Cost of Global Transactions
Klarna says its stablecoin is designed to tackle one of the industry’s biggest inefficiencies: the high cost and slow processing of international payments. With global transaction fees estimated at $120 billion per year, the company sees blockchain rails as a way to make payments “faster and cheaper,” reducing reliance on legacy intermediaries and fragmented settlement layers.
Built on Tempo, Powered by Stripe’s Bridge Platform
KlarnaUSD is being developed on Tempo, a newly built blockchain created by Stripe and Paradigm. Unlike older networks, Tempo is engineered specifically for payment settlement—optimized for speed, low fees, and institutional integrations. Klarna intends to leverage Stripe’s Bridge platform, which connects traditional payment systems with blockchain networks, enabling stablecoin transfers to flow through APIs already familiar to fintech operators.
The stablecoin is currently live on Tempo’s testnet, with full public deployment planned for 2026 once regulatory and infrastructure milestones are met.
From Internal Tool to Merchant and Consumer Utility
At launch, KlarnaUSD will be used internally within Klarna’s own payments stack, serving as a settlement layer to reduce friction and cost behind the scenes. Over time, Klarna plans to expand functionality outward, enabling merchants to accept KlarnaUSD and eventually offering the stablecoin directly to consumers.
This expansion strategy mirrors moves from companies like PayPal, which introduced PYUSD in 2023 and gradually extended its utility across its ecosystem.
A Major Strategic Shift for Klarna
The announcement marks a turning point for Klarna’s long-term strategy. Rather than relying solely on traditional banking partners and card networks, the company is signaling a commitment to blockchain-native infrastructure as the regulatory environment for stablecoins matures in the U.S. and Europe.
If successful, KlarnaUSD could give merchants cheaper settlement options, offer users faster payment experiences, and place Klarna at the center of the next generation of global fintech payment rails.
The stablecoin’s testnet phase is ongoing, with mainnet rollout targeted for 2026.